KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) (KWAP) today signed on to the Principles for Responsible Investment (PRI), a network of investors advocating for sustainable investing.

This makes it the first retirement fund in Malaysia to be a signatory of the United Nations-supported initiative.

KWAP CEO Datuk Wan Kamaruzaman Wan Ahmad said becoming a PRI signatory marks the pension fund commitment to responsible investing, while remain committed to support and promote the use of environmental, social and governance (ESG) investing programmes.

“Currently, about 50-60% of KWAP’s portfolio are ESG-related. We have a target to reach 70% but it depends on the liquidity of the investments, and liquidity always depend on the ecosystem,” he added.

KWAP is currently the country’s second-largest retirement fund with RM125 billion in assets.